On June 3, Georgia conducted negotiations with the EU regarding the ban on re-exporting automobiles to Russia, announced Deputy Prime Minister and Minister of Economy and Sustainable Development, Levan Davitashvili, during a briefing after the government meeting, Sputnik Georgia has reported.
The European Union ratified its 11th set of sanctions against Russia on June 23. The package includes measures such as targeting third countries engaged in re-exporting sanctioned goods, imposing transit bans on certain products through Russia, prohibiting the use of domestic trailers in the EU, and implementing personal restrictions. Automobiles are in the top-3 of goods exported from Georgia to Russia.
"We are currently in the process of negotiations, and I hope that once clarification is provided, it will be resolved positively for Georgian dealers and that the industry will be able to continue its trading operations," Davitashvili stated. He further explained that the Georgian government has clarified to its European partners how the industry operates and how important this issue is for the citizens of Georgia.
Russia remains one of Georgia's main trading partners. The trade turnover between the two countries increased by 38.4% from January to May 2023 compared to the same period in 2022, reaching nearly $1.1 bn. Georgian exports to Russia also grew by 33.8%. In particular, the re-export of passenger cars in the first five months of 2023 increased nearly five and a half times, amounting to $41.4 mn.
Earlier, the Ministry of Finance of Georgia stated that since the introduction of international sanctions, Georgia has made more than 1,200 customs decisions regarding the return of sanctioned goods at customs checkpoints, and over 800 customs decisions refusing oral or written statements of individuals intending to export or re-export goods to economic zones.
Following the start of the conflict in Ukraine, the authorities in Georgia announced that they would not impose sanctions against Russia, as it would only harm Georgia itself. However, they consistently state that they comply with international anti-Russian sanctions related to finance and the movement of goods across the border.
To date, no allegations of circumventing sanctions against the country have been confirmed. In mid-May 2023, Russia lifted the visa regime for Georgian citizens, which had been in place since 2000, and also lifted the ban on direct air communication between Georgia and Russia, which was introduced in 2019. Georgian authorities claim that this was a unilateral decision by Russia. Georgia's Foreign Minister, Ilya Darchiashvili, emphasized that the Georgian authorities made no efforts to restore air communication.
Leaders of the ruling party, "Georgian Dream," also expressed their support for the resumption of flights, as it would benefit hundreds of thousands of Georgians living in Russia who are forced to fly to their homeland through third countries. According to them, all government decisions are made solely in the interests of the people, but Georgia does not abandon its decision to comply with international sanctions and refrains from imposing its own sanctions against Russia.
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